Lam Research, athenahealth, Wynn Resorts, Melco Crown Entertainment and Golden Entertainment highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – June 07, 2017 –Zacks Equity Research Lam Research (NASDAQ: LRCX – Free Report ) as the Bull of the Day, athenahealth (NASDAQ: ATHN – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wynn Resorts (NASDAQ: WYNN – Free Report ), Melco Crown Entertainment (NASDAQ: MLCO – Free Report ) and Golden Entertainment (NASDAQ: GDEN – Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

I last wrote about Lam Research (NASDAQ: LRCX – Free Report ) as Bull of the Day in late April after they delivered the earnings "trifecta" of top and bottom line beats and raised guidance.

I had some fun then talking about the "lam-basting" the bears took who were shorting shares under $130.

But I've had a lot more fun simply owning shares of LRCX.

Because since then, three things keep going up: the EPS estimates, the analyst price targets, and the stock.

Let's review the markets served by this premier semiconductor equipment maker who specializes in the industry known as WFE (wafer fabrication equipment). To start, I can do no better than share this excellent and simple self-description on the company's Overview website page...

To produce the tiny, complex chips used in products such as cell phones, computing devices, and entertainment gadgets, semiconductor manufacturers require highly sophisticated processes and equipment. Lam’s products play a key role in this, allowing chipmakers to build device features that are more than 1,000 times smaller than a grain of sand. In fact, nearly every leading-edge integrated circuit made today has been processed with Lam Research equipment.

Lam’s market-leading products are used in several steps that are repeated multiple times throughout the chip-making process, including thin film deposition, plasma etch, photoresist strip, and wafer cleaning.

Estimates Move Higher

After the company's third-quarter report on April 18 (for fiscal year 2017 ending in June), analysts raised the current year's EPS consensus 6.6% from $9.22 to $9.83.

But the full-year 2018 profit projection rose a whopping 21% to $10.28 from $8.49.

And in the last 30 days, as Semiconductor analysts study global chip demand and rework their sales and earnings models, the estimates keep climbing for Lam.

Bear of the Day :

athenahealth (NASDAQ:ATHN – Free Report ) is a $5.5 billion provider of software and services for physicians and hospitals. Their web-based business services for medical groups and institutions are based on proprietary practice management and electronic health records (EHR) software, a continuously updated payer knowledge-base, and integrated back-office service operations.

One of their specialty services helps doctors with billing and collections using a revenue calculator that shows medical professionals how they can increase payment amounts and timeliness using data pulled from a 99,000-provider network.

The company claims that their patented Billing Rules Engine and expert service teams are proven to get more claims paid on first submission, reduce days in accounts receivable, and dramatically reduce patient no-shows.

Since the end of 2012 through the first quarter of this year, athenahealth grew annual revenues at a 27% CAGR from $422 million to $1.112 billion.

The company, whose CEO Jonathan Bush is cousin to George W. #43, is based in Watertown, MA and has recently become the target of activist investor Paul Singer who runs the $33 billion hedge fund group Elliott Management.

More on that story after we discuss why the stock is a Zacks #5 Rank (Strong Sell).

Earnings Disappointment Brings Estimates Down

On April 27, athenahealth reported adjusted earnings of 10 cents per share in the first quarter of fiscal 2017, missing the Zacks Consensus Estimate by a penny and declining almost 9% on a year-over-year basis.

The company posted revenues of $285.4 million, which also missed the Zacks Consensus Estimate of $297 million but increased 11.3% on a year-over-year basis.

athenahealth registered operating margin of 7.7% in the first quarter compared with 9.4% in the year-ago quarter.

For fiscal 2017, the company expects revenues in the band of $1,210–$1,250 million. Adjusted operating income is projected in the range of $120–$140 million with annual bookings expected at around $350–$400 million.

In response to this report and outlook, analysts took the 2017 full-year EPS consensus down 29% from $1.18 to $0.84, representing negative 18% "growth."

And the 2018 profit projection slipped an unhealthy 31.45% from $1.59 to $1.09.

Additional content:

3 Casino Stocks to Buy Now

Perhaps it’s because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it’s because Las Vegas conjures images of the world’s most flashy brands and businessmen. Regardless of the reason, it’s clear that casino stocks are always among the most popular on Wall Street

Luckily for investors, now is also a great time to be buying casino stocks, as continued domestic strength and a great recovery in Macau have led to rising share prices. In fact, the overall gaming industry currently sits in the top 26% of the Zacks Industry Rank.

With casino stocks this hot right now, investors are not going to want to miss out. Luckily, we can use Zacks’ proven stock-picking methods to find solid stocks in any industry. Check out these highly-ranked casino stocks today:

1. Wynn Resorts (NASDAQ:WYNN – Free Report )

Led by the legendary Steve Wynn, this iconic gaming brand once again posted impressive earnings results in the most recent quarter. Wynn reported earnings of $1.24 per share and revenues of $1.48 billion, surpassing our respective consensus estimates of $0.74 and $1.34 billion. The company’s new Macau resort, the Wynn Palace, marked its second full quarter of operations, lifting total revenue figures 48% on a year-over-year basis.

Since the report, we’ve seen a flurry of earnings estimate revision activity for WYNN, lifting its current-quarter Zacks Consensus Estimate by 31 cents and giving the stock a Zacks Rank #1 (Strong Buy). And looking down the road, Wynn is positioned well in Macau and Vegas; the company just finalized plans for the Le Reve which it has designed to be the preeminent luxury hotel and destination casino resort in Sin City.

2. Melco Crown Entertainment (NASDAQ:MLCO – Free Report )

Melco Crown was another casino giant that really impressed in the most recent earnings season. The company, which gets the majority of its revenue from Macau, posted adjusted earnings of $0.24 per share, crushing the Zacks Consensus Estimate of $0.08. Revenues of $1.28 billion also topped our consensus estimate and soared 15.7% year-over-year.

Revenues in Macau grew 24% in the month of May, beating estimates and marking the tenth-straight month of growth in the region. This is great news for Melco Crown, which has steadily risen all year. Indeed, shares are up 40% year-to-date. Nevertheless, this Zacks Rank #1 (Strong Buy) stock is poised to break even higher.

3. Golden Entertainment (NASDAQ:GDEN – Free Report )

Formed in 2015 after the merger of Golden Gaming and Lakes Entertainment, Golden Entertainment is a regional casino and tavern operator that has been on an absolutely insane run this year, with shares gaining nearly 45% so far.

And while some investors may say that means GDEN is trading at a premium, all signs point to continued growth for this stock. Shares could certainly still march higher, as indicated by its Zacks Rank #2 (Buy) ranking, and it is fundamentally sound, evidenced by its “A” grades for Value and Growth.

Want more stock market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>

Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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.

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 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.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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