Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: SanDisk, Apple, Western Digital, Seagate Technology and Tetra Tech

CHICAGO, July 5, 2013 /PRNewswire/ -- 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 SanDisk Corp. (Nasdaq:SNDK-Free Report), Apple Inc. (Nasdaq:AAPL-Free Report), Western Digital Corp. (Nasdaq:WDC-Free Report), Seagate Technology plc (Nasdaq:STX-Free Report) and Tetra Tech Inc. (Nasdaq:TTEK-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday's Analyst Blog:

SanDisk Gets SMART, Boosts SSD Portfolio

Flash memory storage vendor SanDisk Corp. (Nasdaq:SNDK-Free Report) recently acquired SMART Storage Systems, a bellwether solid state drive (SSD) storage solutions provider. The purchase consideration includes $307.0 million cash and certain equity-based incentives for SMART Storage Systems' employees. The acquisition will allow SanDisk to strengthen its position in the enterprise market for SSD storage.

SMART Storage specializes in providing SATA and SAS-based SSDs, which are supplied to tier 1 storage and server OEMs (original equipment manufacturer). Leveraging Smart Storage's capabilities and intellectual properties, SanDisk will be able to enhance its existing enterprise SSD and software portfolio, gain economies of scale and increase share in the potential $1.6 billion enterprise SATA and SAS space. SanDisk will be retaining the company's 250 employees.

The deal has already been approved by the boards of directors of both  companies and is expected to close by August, pending certain customary and regulatory approvals. SanDisk expects the deal to be slightly dilutive to earnings in second half of 2013, before becoming accretive in 2014.

Earlier, SanDisk acquired flash memory software solutions provider, FlashSoft Corp. in Feb 2012 and enterprise SSD solutions provider Pliant Technology in May 2011.

At its recent analyst day (May 2013), SanDisk announced that it expects contribution from the SSD business to grow to roughly 35.0% by 2016. The company expects that 2 out of 3 notebooks will be enabled by flash in 2016, up from 1 out of 8 notebooks in 2012.

We believe that the synergies from the acquisition will help SanDisk to emerge as a major player in the fast growing flash memory market, thus lending greater stability to its revenue stream.

Restricted wafer capacity addition will boost better supply/demand metrics as well as pricing in 2013. Apart from this, we are positive on 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) and a long-term supply agreement with Apple Inc. (Nasdaq:AAPL-Free Report).

But lackluster PC sales, European issues, stiff competition from Western Digital Corp. (Nasdaq:WDC-Free Report) and Seagate Technology plc (Nasdaq:STX-Free Report) (in SSD space) and currency fluctuations are concerns.

Currently, SanDisk holds a Zacks Rank #3 (Hold).

Tetra Tech Downgraded to Strong Sell

Zacks Investment Research downgraded Tetra Tech Inc. (Nasdaq:TTEK-Free Report) to a Zacks Rank #5 (Strong Sell). Tetra Tech is a technical service provider for water and environmental purifications, pollution control and other related fields. 

Why the Downgrade?

On Jun 18, Tetra Tech lowered its financial guidance for the third quarter of fiscal 2013, which resulted in a downward revision in earnings estimate in the last 7 days. The Zacks Consensus Estimate for 2013 has gone down by a whopping 44.85% over the last 30 days to 91 from the earlier estimate of $1.65, while for 2014, the estimate decreased by 8.37% to $1.86.

According to the company, the lowered guidance to a loss of 30 cents to 50 cents per share from an earlier guidance of 32 cents to 42 cents earnings per share brought about the impacts of increased restructuring costs from weakness in Eastern Canada and mining. However, this necessitated investigation into possible breaches of fiduciary duty by the company. Different law offices have got engaged in this investigation. With this a number of lawsuits have been filed in the United States District Court against the company and Shareholders Alert has been declared. This had a further adverse effect on the stock.

The company delivered negative earnings surprises in three out of the last four quarters with an average negative surprise of 1.59% for the last four quarters. Also, the company's earnings estimate for the current quarter is a loss of 41 cents per share. Shares of Tetra Tech also attained a 52-week low on Jun 19 of $22.56. Moreover, most of the analysts have downgraded their estimates during the last 30 days and thus the stock experienced a sharp dip in its Zacks Rank straight from a Zacks Rank #3(Hold) to a Zacks Rank #5(Strong Sell).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

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 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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on SNDK - FREE

Get the full Report on AAPL - FREE

Get the full Report on WDC - FREE

Get the full Report on STX - FREE

Get the full Report on TTEK - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.