Potlatch, Seagate Technology and General Motors highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 26, 2017 – Zacks Equity Research Potlatch (Nasdaq:PCH – Free Report) as the Bull of the Day, Seagate Technology (Nasdaq:STX – Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Motors (NYSE:GM – Free Report).
Here is a synopsis of all three stocks:
Bull of the Day:
Structured as a REIT, Potlatch (Nasdaq:PCH – Free Report) owns approximately 1.4 million acres of forestland in Alabama, Arkansas, Idaho, Minnesota and Mississippi. The company also operates five manufacturing facilities that produce lumber and panel products. They are among the top 10 lumber manufacturers in the US.
Additionally, the company conducts a real estate sales and development business through its subsidiary.
Better-than-expected Results
The timber REIT reported adjusted earnings of $0.54 per share, substantially ahead of the Zacks Consensus Estimate of $0.30 as they benefitted from rising lumber prices.
Thanks mainly to the 11% surge in average lumber prices, wood products segment’s income was almost three times higher than the income earned in the first quarter.
"The power of our leverage to lumber prices was reflected in our strong financial performance in the second quarter," said the CEO. "Our Wood Products segment shipped a record volume of lumber for the third time in four quarters, maximizing the benefit of robust lumber prices."
Rising Estimates
Zacks Consensus Estimates for the current and next year have increased to $2.37 and $2.34 respectively, from $2.09 and $2.14, before the results.
Bear of the Day:
Headquartered in Dublin, Ireland, Seagate Technology (Nasdaq:STX – Free Report) is a global leader in data storage solutions. They are the second-largest manufacturer of hard disk drives in the US and offer other electronic data storage products including solid state hybrid drives, solid state drives and peripheral component interconnect express cards.
Weak Results
Seagate reported disappointing results for its fourth-quarter fiscal 2017 with both earnings and sales missing our estimates. Non-GAAP earnings of $0.65 per share fell 41% on a sequential basis and were significantly below the Zacks Consensus Estimate of 99 cents.
Revenues fell 9.3% year-over-year to $2.41 billion and also missed the estimate of $2.55 billion. Intense competition in the hard disk drive market from Western Digital and others hurt the results.
The stock fell almost 19% after the release.
Falling Estimates
Zacks Consensus Estimate for the current and next year have plunged to $3.83 per share and $4.12 per share respectively, from $4.75 and $4.77, before the results.
Additional content:
GM Stock Hits 52-Week High as Semiautonomous Cadillacs Hit the Road
General Motors(NYSE:GM – Free Report) stock popped on Monday morning after it was reported that the automaker is set to show off its new semi-autonomous driving technology on a cross-country road trip this week, right before the technology starts to make its way to dealerships.
The company outfitted a dozen Cadillac CT6 sedans with GM’s new “Super Cruise,” hands-free driver assist technology. The Cadillacs will depart from New York on Monday and drive to Los Angeles in a demonstration of GM’s semi-autonomous driving technology, according to an Associated Press report.
The auto giant’s nascent self-driving car technology has been in the works for a while in order to make sure it is safe. GM’s Super Cruise technology is designed to keep the car centered in its lane and at a safe distance from other vehicles. The system will only work on limited-access, divided highways where pedestrians and other obstacles are more rare.
The Super Cruise technology also features an array of other safety features, but the basic concept is simple: drivers don’t have to keep their hands on the steering wheel at all times.
Super Cruise utilizes military-grade GPS, a front-facing camera, and a ton of other radars. Drivers must remain completely focused and alert at all times in order to be able to take control of the wheel at a moment’s notice.
GM’s technology monitors the driver’s face to ensure they are paying attention. A small infrared steering wheel camera tracks the position of the driver’s head. If the system detects that a driver has looked away from the road ahead—left, right, or down—for more than a few seconds, a light on the steering wheel will flash.
If drivers do not react quickly enough, Super Cruise warnings escalate. The driver’s seat begins to vibrate, the steering wheel flashes red, and audible alerts sound. If these warnings are ignored, the car’s emergency flashers turn on before it automatically slows to a stop and contacts GM’s OnStar safety system. The faster the car is traveling, the less time the driver has to react.
Super Cruise-equipped Cadillacs will start to ship to dealerships this week. The semi-autonomous, self-driving system is set to come standard in the Cadillac CT6 Platinum model, and will also be available as part of an upgraded package in Premium Luxury CT6 cars.
Shares of GM jumped over 2.50% in morning trading to hit a new 52-week intraday trading high of $40.64 per share. GM is currently a Zacks Rank #3 (Hold) but scored an “A” for Value and a “B” for both Growth and Momentum in our Style Scores system.
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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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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Seagate Technology PLC (STX) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Potlatch Corporation (PCH) : Free Stock Analysis Report
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